ASGN shares fall for a fifth straight session on Tuesday, company to offer senior unsecured notes for $500 million

ASGN Inc (ASGN) said on Tuesday that it intended to offer $500 million in aggregate principal amount of senior unsecured notes due 2028.

The company will offer and sell the notes in the United States only to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933, and to non-US persons in transactions outside the United States, pursuant to Regulation S under the Securities Act.

ASGN shares closed lower for a fifth consecutive trading session in New York on Tuesday. It has also been the steepest daily loss since October 31st. The stock went down 0.95% ($0.63) to $66.01, after touching an intraday low at $65.67, or a price level not seen since November 4th ($64.50).

Shares of ASGN Inc have risen 21.12% so far this year, following a 15.20% drop in 2018.

The company said that it would use the net proceeds from the notes in order to:

first, repay all amounts outstanding under its revolving credit facility,

second, repay all amounts outstanding under its term loan facility due 2022,

third, repay a part of the amount outstanding under its term loan facility due 2025 and

fourth, cover expenses and fees associated with the offering of notes.

Analyst stock price forecast and recommendation

According to CNN Money, the 8 analysts, offering 12-month forecasts regarding ASGN Inc’s stock price, have a median target of $71.50, with a high estimate of $84.00 and a low estimate of $61.00. The median estimate represents an 8.32% upside compared to the closing price of $66.01 on November 12th.

The same media also reported that at least 7 out of 9 surveyed investment analysts had rated ASGN Inc’s stock as “Buy”, while 2 – as “Hold”.